Salomon L. Rael



In 2004, the IRS notified the Taxpayer that an examination of his 2000 and 2001 federal income tax returns revealed a substantial underreporting of compensation.  The reports that notified the Taxpayer, referred to as “RARs” were not signed, but did include the name and employee identification number of the federal agent who made the adjustments.  The IRS informed the Department of this adjustment and the Department assessed the Taxpayer for additional New Mexico personal income tax for the tax years in question.  The Taxpayer protested, arguing that the RAR was invalid because it was not signed under penalty of perjury and that the Department had not followed required procedures in obtaining copies of the RARs.  The Taxpayer did not deny that he earned the income on which the assessment was based.    Held:  The Taxpayer’s legal  arguments have been addressed and rejected by the New Mexico Court of Appeals; the Taxpayer failed to introduce any factual evidence to meet his burden of proving that the assessments issued by the Department were incorrect.    Protest denied.